Capital Ideas Podcast Asset allocation in uncertain times
Aug 7, 2025
In this discussion, Paul Benjamin, a portfolio manager at Capital Group with expertise in technology and AI, teams up with Hilda Applbaum, a multi-asset allocation specialist. They delve into asset allocation strategies amidst economic uncertainty. Hilda shares insights on dividends and investment prospects in the realm of fallen angels. Meanwhile, Paul highlights sectors poised for growth due to the AI revolution. Together, they offer compelling strategies for navigating stocks, bonds, and the complexities of today’s financial landscape.
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Expensive Markets But Stimulus Can Lift Growth
- Paul Benjamin sees markets as historically expensive but notes easy economic comps and fiscal stimulus could lift growth.
- He is modestly less bearish because deficits and a weaker dollar can support global activity.
Rates Might Stay Higher On The Long End
- Hilda Applbaum thinks markets were overly optimistic on how quickly rates would fall and sees inflation stickier due to tariffs.
- She expects short rates may ease but long-end yields could stay elevated because of deficits and a weaker dollar.
AI As A Once-In-A-Century Platform Shift
- Paul Benjamin calls AI a platform-shifting innovation comparable to the railroad and internet and sees unprecedented speed of progress.
- He highlights rapid capability gains and massive cloud demand as signs of a long runway for AI investments.
